Bank of America-Led Lending Syndicate Seals $360M Construction Loan for 1 Java Street
A joint venture between Lendlease and Aware Super has secured a $360 million construction loan for the development of 1 Java Street in Brooklyn.
The loan came from a four-bank lending syndicate led by Bank of America (BAC) and which included Mizuho Bank, Oversea-Chinese Banking Corporation and TD Bank, sources familiar with the deal told Commercial Observer. JLL represented the borrower with a team led by Christopher Peck, Alex Staikos, Phil Cadorette and Joy Dracos.
“This financing is proof that experienced, creditworthy sponsors can secure debt financing even in uncertain market conditions,” Ben Byrne, a portfolio manager at Lendlease, said in prepared remarks. “Leveraging the strengths of our integrated business model and partnership with Aware Super, Lendlease has forged strong relationships with financial institutions all over the globe, providing us with access to a multitude of capital sources who trust in our ability to execute.”
The 36-story, 834-apartment multifamily development will utilize Lendlease’s investment management, development and construction business units. The project is scheduled to be completed in 2026, according to a release.
“The ability of this project to attract debt financing in the current market verifies our shared belief in the strong fundamentals and future potential of 1 Java Street — a project we believe will not only reshape the Brooklyn waterfront but generate strong cash-on-cash returns for our property portfolio,” Alek Misev, senior portfolio manager at Aware Super, said in prepared remarks.
According to a release, 30 percent of 1 Java Street’s units will qualify as affordable housing as part of New York’s now-expired 421a program. The property also includes 13,000 square feet of retail space in its base, and a public park that abuts the East River and spans roughly 18,000 square feet.
The multifamily development is the sixth undertaken by the Aware Super and Lendlease joint venture. With that ESG focus in mind, the waterfront park isn’t the property’s only green element. The building is aiming for LEED Gold, Fitwel and Waterfront Edge Design Guidelines certifications, according to the release.
Officials at Bank of America, Mizuho Bank, Oversea-Chinese Banking Corporation and TD Bank did not immediately respond to requests for comment.
Update: This story originally misattributed source material. This has been corrected. We apologize for the error.
Emily Fu can be reached at efu@commercialobserver.com.
